I can't see how a puller like that will work.
The hubs on the W123 are hollow tubes. You need to have some sort of reaction against the pulling of the hub up against the trailing arm. A puller like that could work if you could build a bridge at the front and around the hub and onto the trailing arm - but you'd need a huge 3 legged puller like that to fit round it all.
You probably don't want to do this but I made one out of wood (!)...
http://www.peachparts.com/shopforum/diesel-discussion/277341-w123-rear-wheel-bearing-removal-help-needed-2.html
There's a slightly better metal version that does the same and more shown here
http://www.peachparts.com/shopforum/general-information/239902-home-made-special-tools-where-members-can-share-how-they-made-special-tools.html
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